Shares in James Hardie Industries NV plunged today after a new estimate of $2.24 billion for its possible asbestos liabilities was presented to a NSW Special Commission of Inquiry into the building products company.

Analysts said the figure - produced by counsel assisting the commission, John Sheahan SC - was the worst-case scenario and the company would likely not end up having to dish out that much.

However, the new figure was combined with widespread negative publicity for James Hardie today, following the public release of submissions to the inquiry yesterday that included allegations of James Hardie executives misleading the NSW Supreme Court and of treating asbestos-disease sufferers "with disdain".

By 1348 AEST James Hardie shares were down nearly six per cent, losing 35 cents to $5.56.

Macquarie Equities adviser Helen Spencer said there was significant investor nervousness in the stock.

"It's all about this ongoing issue of (the company) facing further compensation in terms of asbestos liability," she said.

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"Estimates continue to rise."

The stock will likely remain under pressure for the rest of day, and beyond.

"This issue is not going to go away in a hurry," she added.

In his submission to the inquiry, Mr Sheahan estimated that current and future asbestos compensation claims against James Hardie's two former asbestos-producing subsidiaries would total $2.24 billion - much higher than the previous estimate provided by actuarial firm KPMG of $1.57 billion.

The foundation that James Hardie set up in 2001 to handle its asbestos compensation was only provided $293 million to meet the claims and that money is now expected to run out in about three years' time.

Mr Sheahan said the KPMG estimate did not take into account so-called "third wave" claims - that is, compensation claims from people exposed to deadly asbestos fibres from James Hardie products through activities such as renovations, rather than from working in asbestos mines or factories.

Mr Sheahan also said KPMG did not take into account the increasing propensity of asbestos-disease victims to make a claim.

He recommended that an estimate of "not less than" $2.24 billion would provide "reasonable confidence" that all James Hardie's asbestos victims would be covered.

However James Hardie rejected that estimate, stating in its submission of reply that there was no actuarial evidence to support Mr Sheahan's view.

Instead, James Hardie submitted that Commissioner David Jackson QC stick to KPMG's estimate, while making it clear that "actual liabilities may be considerably more, or less, than that amount".

Financial analysts from Credit Suisse First Boston (CSFB) said in a note to clients that Mr Sheahan's submission did not change their view that James Hardie would likely end up having to provide about an extra $550 million (pre-tax) for compensation claims.

That would be through a ruling from Commissioner Jackson to set up a legislated scheme to handle the compensation claims, which would significantly reduce costs by removing lawyers from the equation.

Other analysts agreed that the $2.24 billion was a "worst-case scenario", but were reluctant to speculate as to what Commissioner Jackson will rule when his findings are handed down on September 21.

"You have to question whether the company will now fail as an investment grade company for many fund managers on ethical grounds," Market analyst Marcus Padley said.